Jim Beam to pause production at its main distillery on Jan. 1
The maker of Jim Beam bourbon whiskey said it plans to pause production at its main distillery in Kentucky starting Jan. 1.
Jim Beam, which is owned by a U.S. subsidiary of Japan's Suntory Holdings, said in an email to CBS News that its distillery in Clermont, Kentucky, will temporarily halt production "while we take the opportunity to invest in site enhancements." The company plans to keep its James B. Beam campus open for visitors during that time, the company added.
Jim Beam will continue to distill at its Fred B. Noe craft distillery in Clermont and Booker Noe distillery in Boston, Kentucky.
The pause comes amid several challenges in the wine and spirits industry. Americans overall are drinking less, with Gallup finding that the share of U.S. adults who consume alcohol has fallen to 54%, near a 90-year low.
Exports of U.S.-produced spirits fell 9% in the second quarter, partly due to the impact of the Trump administration's tariffs, according to an October report from the Distilled Spirits Council of the United States, a trade group. Exports to Canada were particularly hard hit, declining by 85% during the period, after Canadian retailers pulled U.S. spirits from shelves in retaliation for President Trump's tariffs, the group noted.
Through August, whiskey distillers had produced 55 million fewer proof gallons this year than a year ago, a decline of 28%, according to the Lexington Herald-Leader. A proof gallon is one U.S. gallon of liquid that is 50% proof alcohol.
Whiskey connoisseurs may not have to worry about supplies running low. Kentucky warehouses now hold a record 16.1 million barrels of aging bourbon, according to the Kentucky Distillers' Association. The total — reported in October — marks the highest level since the repeal of Prohibition and reflects a 27% increase from 2024, the group said.
The surge in bourbon supplies is partly due to an increase in the number of distillers located in Kentucky, the group said. But the industry is also witnessing a dip in demand due to uncertainty over tariffs, declining exports and shifts in drinking habits, it added.
Bourbon, a type of whiskey, must adhere to U.S. distilling laws to be labeled as such. For instance, the liquor must be aged in new, charred oak containers and the grain recipe must be at least 51% corn, according to whiskey tourism site Bourbon Country.